As for the broader retail landscape, not all news was negative. The AIM All-Share Index ended the week down by about 1.5%, largely due to a 25bps interest rate hike by the Bank of England — though this was not entirely unforeseen.
The UK’s premier stock index had a rather understated close to the week, yet it managed to eke out a slight increase on the day, ending 0.3% up at 7,755 points.
Michael Hewson, an analyst at CMC Markets, described the week as generally “mild and quiet” for the equity markets.
Cellular Goods PLC (LSE: CBX) experienced a surge, reaching a six-month high after securing a product placement deal with multinational beauty retailer Sephora. The news led to an early trading jump to 2p, as Cellular Goods’ Look Better skincare line was confirmed to be joining Sephora’s UK website later this month.
The AIM market’s video gaming segment also had some action, with Keywords Studios PLC (AIM: KWS, OTC: KYYWF) seeing a 6% boost following its acquisition of Seattle-based studio Hardsuit Labs, known for its work on the Call of Duty series. The company ended the week 2.5% higher.
Other industrial sectors also saw positive movement, with coal mining company Bens Creek Group PLC (AIM: BEN, OTC: BENCF) closing the week up by 19% following a significant stake acquisition by Singapore-based commodity trader Avani. Shares of Anglo Asian Mining PLC (AIM: AAZ, OTC: AGXKF), a producer of gold, copper, and silver in Central Asia, also rose by double digits.
Matthew Moulding Founder & CEO @thgplc Today #THG announced that we’ve rejected a bid from #USA PE giant, Apollo Global, and ended discussions.
Why? https://t.co/dbsUYfMZy3
(Pic is from yesterday’s board call). https://t.co/gfTJ41VBP1 pic.twitter.com/cQDYHaZkiL— Share_Talk ™ (@Share_Talk) May 12, 2023
Noteworthy advancements were also observed in Longboat Energy (up 54%), Clean Power Hydrogen (up 34%), and Panthera Resources (up 26%).
E-commerce conglomerate THG PLC (LSE: THG) saw its shares drop by 9.4% after it pulled out of acquisition talks with private equity firm Apollo.
The company, which owns well-known online brands like Grow Gorgeous and My Geek Box, stated that Apollo’s bid significantly underestimated its value. Previously known as The Hut Group, THG was once valued at £5.4bn. However, challenging market conditions, profit warnings, and some scepticism about its technological foundation have led to a reduction in its market capitalisation to £880mln.
Unbound Group PLC (AIM: UBG) the company, formerly known as Electra Private Equity, launched on the AIM market last February. It had previously spun off its TGI Fridays restaurant chain and rebranded as Unbound, pivoting its focus towards its Hotter Shoes range. While Electra’s split was a narrative in itself, Unbound’s journey on AIM has seen its fair share of fluctuations.
In March, the company’s shares doubled after it announced considerations for a bid from WoolOvers Group, which valued the business at £6.8mln — a hefty 162% premium.
However, the past week was less optimistic, as shares plummeted nearly 60% in response to a disappointing trading update.
Although lower-than-projected revenues were concerning, the main blow came from Marwyn Investment Management’s decision to withdraw its proposed £10mln equity investment, which was announced in April. Citing concerns over current trading figures, Marwyn pulled out of the investment after Unbound reported “challenging” trading conditions since the beginning of the year, with a “worsening” situation compared to its January update.
Despite these challenges, Unbound is actively engaged in a comprehensive group review and remains primarily dedicated to managing cash flows. It also intends to maintain productive discussions with its banking partners. At the time of writing, Unbound’s shares were trading at 2.7p.
